Delek Logistics(US:DKL)2025-11-07 18:09Financial Performance - Total net revenues for Q3 2025 reached $261.3 million, a 21.9% increase from $214.1 million in Q3 2024[16] - Operating income for Q3 2025 was $45.4 million, compared to $31.8 million in Q3 2024, reflecting a 42.6% increase[16] - Net income for the nine months ended September 30, 2025, was $129.2 million, up from $107.4 million for the same period in 2024, representing a 20.3% increase[16] - The company reported a basic net income per unit of $0.85 for Q3 2025, compared to $0.71 for Q3 2024, marking a 19.7% increase[16] - Net income for the three months ended September 30, 2025, was $46.3 million, up 37.4% from $33.7 million in the prior year[46] - Net income for the three months ended September 30, 2025, was $45,560 thousand, compared to $33,674 thousand in 2024, reflecting a year-over-year increase of 35.3%[79] - The company reported a net income of $45.6 million for Q3 2025, compared to $33.7 million in Q3 2024, representing a 35.4% increase[180] Assets and Liabilities - Total current assets increased to $382.8 million as of September 30, 2025, compared to $145.9 million at December 31, 2024[14] - Long-term debt, net of current portion, rose to $2.3 billion as of September 30, 2025, up from $1.9 billion at December 31, 2024[14] - Total assets as of September 30, 2025, were $2.75 billion, an increase from $2.04 billion at December 31, 2024[14] - The company’s total liabilities increased to $2.73 billion as of September 30, 2025, compared to $2.01 billion at December 31, 2024[14] - The principal amount of long-term debt as of September 30, 2025, was $2,306,850 thousand, compared to $1,885,400 thousand at the end of 2024, reflecting an increase of 22.3%[80] Cash Flow and Investments - Net cash provided by operating activities increased to $193.9 million for the nine months ended September 30, 2025, compared to $156.4 million in 2024, reflecting a growth of 24%[21] - The company reported a net cash used in investing activities of $411.7 million for the nine months ended September 30, 2025, compared to $314.5 million in 2024, representing a 31% increase[21] - Cash paid for interest during the nine months ended September 30, 2025, was $129.3 million, up from $95.3 million in 2024, indicating a 35.7% increase[22] - The company reported a net increase in cash and cash equivalents of $1.5 million for the nine months ended September 30, 2025, compared to an increase of $3.6 million in 2024[21] Acquisitions - The Gravity Acquisition completed on January 2, 2025, had a preliminary purchase price of $300.8 million, which included $209.3 million in cash and 2,175,209 common units[33] - Revenue from the Gravity Acquisition operations was $67.5 million for the period from January 2, 2025, through September 30, 2025, with a net income contribution of $24.0 million[35] - The H2O Midstream Acquisition was completed for a total consideration of $229.7 million, consisting of $159.7 million in cash and $70.0 million in preferred units[47] - The preliminary fair value of total assets acquired in the H2O Midstream Acquisition was $243.9 million, with property, plant, and equipment valued at $172.4 million[50] - The partnership aims to increase third-party revenue streams and expand its footprint in the Midland and Bakken basins through the acquisitions of Gravity and H2O Midstream[56] Revenue Segments - Gathering and Processing segment revenues reached $132.2 million in Q3 2025, up from $81.5 million in Q3 2024, reflecting a significant increase[180] - Net revenues for the gathering and processing segment increased by $98.5 million, or 36.5%, in the nine months ended September 30, 2025, compared to the same period in 2024[199] - Net revenues increased by $47.2 million, or 22.1%, in Q3 2025 compared to Q3 2024, primarily driven by growth in gathering and processing segments[182] - Net revenues for the wholesale marketing and terminalling segment decreased by $45.8 million, or 12.6%, for the nine months ended September 30, 2025, compared to the same period in 2024[207] Expenses - Operating and maintenance expenses for the three months ended September 30, 2025, were $23,076 thousand, up from $15,275 thousand in 2024, representing an increase of 51.3%[72] - General and administrative expenses decreased by $4.3 million, or 16.1%, in the nine months ended September 30, 2025, compared to the same period in 2024[187] - Depreciation and amortization for the three months ended September 30, 2025, was $34.799 million, up from $21.204 million in the same period of 2024, reflecting a 64% increase[112] - Operating expenses increased by $33.4 million, or 37.4%, in the nine months ended September 30, 2025, compared to the same period in 2024[185] Cash Distributions - Distributions to common unitholders totaled $178.2 million for the nine months ended September 30, 2025, compared to $148.1 million in 2024, reflecting a 20.3% increase[21] - Quarterly cash distributions per limited partner unit increased from $1.055 in Q4 2023 to $1.120 in Q3 2025, with total cash distributions reaching $59,898,000 for Q3 2025[97] Strategic Initiatives - The Partnership aims to achieve strong cash flow growth in 2025, driven by the expansion of the Libby gas processing plant and the integration of H2O Midstream and Gravity acquisitions[166] - The Partnership is focused on reducing its leverage ratio to enhance financial flexibility and pursue growth opportunities[165] - The Partnership's strategic focus areas for 2025 include pursuing organic growth opportunities in the Permian Basin and engaging in mutually beneficial transactions with Delek Holdings[163]